Press Release: iPOS.vn Launches the Vietnam F&B Industry Report for the First Half of 2024 at Vietnam F&B Summit 2024

Announcement

21/08/2024

PRESS RELEASE

#1: iPOS.vn Launches the Vietnam F&B Industry Report for the First Half of 2024 at Vietnam F&B Summit 2024

#2: Vietnam F&B Summit 2024 Discusses “Smart Cash Flow” Strategies

#3: iPOS.vn Publishes the Vietnam Food & Beverage Market Report for H1 2024

Ho Chi Minh City, August 21, 2024 – iPOS.vn officially announced the release of the Vietnam Food & Beverage Market Report for the First Half of 2024 during the Vietnam F&B Summit 2024.

The Vietnam Food & Beverage Market Report is an annual initiative by iPOS.vn, aiming to consolidate data, evaluate market performance, and analyze the impact of macroeconomic conditions on Vietnam’s food and beverage industry. In addition, the report provides in-depth insights into consumer behavior during the first six months of 2024, with comparisons to the same period last year. In this edition, iPOS.vn also introduces a dedicated, in-depth study on human resources in Vietnam’s F&B sector.

Within the framework of Vietnam F&B Summit 2024, more than 10 leading speakers—including business leaders and top industry experts—gathered to discuss the performance of the F&B market in the first half of 2024 and explore effective investment and business strategies amid ongoing economic challenges. The event was proudly supported and sponsored by Nestlé Vietnam and Tan Nhat Huong.

Mr. Vu Thanh Hung, Chief Executive Officer of iPOS.vn, shared:

“The first half of 2024 witnessed significant volatility, posing numerous challenges for the service sector, especially the F&B industry. However, Vietnamese F&B businesses have demonstrated remarkable flexibility by swiftly adjusting operations, cutting unnecessary costs, and optimizing cash flow. At the same time, continuous innovation in product development has delivered fresh culinary experiences, attracting a wide range of consumers.”

About the Vietnam Food & Beverage Market Report

The Vietnam Food & Beverage Market Report for the First Half of 2024 is based on research involving nearly 1,000 restaurants and cafés, more than 2,300 consumers, and 1,307 F&B employees across Vietnam, representing diverse age groups and occupations. The report also references data from reputable market research firms, international sources, and expert opinions.

As of June 2024, Vietnam recorded approximately 304,700 F&B outlets, a 3.9% decrease compared to 2023. At least 30,000 outlets nationwide have closed, while new openings remain limited. Despite these challenges, total industry revenue reached VND 403.9 trillion, equivalent to 68.46% of total revenue for the entire year of 2023, exceeding expectations.

From early 2024, F&B businesses experienced strong fluctuations in revenue. Although the year began with positive signals, a clear downward trend emerged by mid-year. Specifically, over 43.4% of businesses reported revenue declines in February, followed by a slight recovery in March, and then a steady decrease through mid-year. As a result, businesses have become increasingly cautious about expansion in the second half of 2024. Survey results show that 61.2% of businesses plan to maintain their current scale, while only 34.4% intend to expand, compared to 51.7% during the same period in 2023.

Despite economic pressure, Vietnamese consumers’ passion for dining out remains strong. Instead of reducing dining frequency, many consumers have adopted more structured spending plans. High-frequency dining groups (3–4 times per week or daily) remained nearly unchanged compared to 2023, while the group dining out 1–2 times per week increased by 4.1% year-on-year. Overall, loyal customer segments continue to maintain their dining habits, highlighting the enduring appeal of the F&B industry.

Spending on café visits declined sharply in the first half of 2024, along with reduced visit frequency. While the VND 41,000–71,000 per drink price range gained popularity—up 11.5% in consumer preference—premium segments struggled. Spending above VND 100,000 per drink dropped significantly from 6% to just 1.7%.

This report also presents an in-depth human resources study, revealing that Vietnam currently employs approximately 2.89 million F&B workers, with 81.3% working part-time. While the industry provides substantial employment opportunities, it remains less attractive for long-term career orientation.

Vietnam F&B Summit 2024 – Smart Cash Flow

Amid a challenging market landscape, the ability to manage and allocate cash flow wisely has become a decisive factor for business survival. Speakers engaged in open and objective discussions, delivering valuable insights to attendees.

Keynote 2: Where Is Consumer Spending Flowing?

Despite economic pressure, consumers continue to adapt, and F&B services remain a key outlet for stress relief after demanding workdays.

In this session, Mr. Do Duy Thanh (CEO, FnB Director) shared insights into consumer cash flow trends and evaluated F&B business models during shifting spending behaviors. He analyzed three business categories: new businesses, efficient businesses, and businesses performing below expectations.

Panel Talk 1: Is F&B Still an Attractive Investment in the Near Future?

Although economic challenges persist, the F&B sector continues to attract new entrepreneurs. Opening a restaurant or café remains a popular entrepreneurial pathway.

Moderated by Mr. Do Duy Thanh, this discussion featured Mr. Nguyen Thai Binh (Co-founder, FBVI) and Mr. Vu Viet Anh (CEO, LaBoong Milk Tea). The panel explored investment challenges, short-term growth potential, and macro- and micro-policy factors influencing the industry.

Keynote 3: Financial Cost Allocation in F&B Businesses

Financial cost allocation remains a critical issue, especially given the hidden cost structures typical in the F&B sector.

Mr. Nguyen Thai Binh analyzed revenue structures, cost components, and cost of goods sold, offering practical advice on cash flow allocation for small and medium-sized business models.

Keynote 4: Adapting to Food App Platforms

As competition intensifies across online platforms, F&B operators are striving to balance operational costs and revenue.

Mr. Nguyen Van Hau (CEO, Com Tho Anh Nguyen) shared his experience navigating changes in food delivery platforms, optimizing operations, controlling costs, and selecting effective advertising channels.

Panel Talk 2: Increasing Marketing Effectiveness with Low Budgets

Using a new Firechat format, moderator Chau Le and speaker Phung Anh The (Chairman, Maycha Milk Tea) discussed four key strategies: owned media channels, packaging development, partner marketing, and bold growth campaigns.

Panel Talk 3: Growth Strategies in Economic Downturns

Despite challenging conditions, some businesses continue to grow by anticipating consumer trends and policy shifts.

This panel featured Mr. Pham Minh Chi (COO, VFBS Vietnam Group), Mr. Phung Anh The (Chairman, Maycha Milk Tea), Mr. Nguyen Van Hau (CEO, Com Tho Anh Nguyen), and was moderated by Mr. Phan Anh Minh (CEO, SitePlus).

END

About iPOS.vn

With over 14 years of experience in Vietnam’s F&B industry, iPOS.vn is a leading provider of specialized management solutions for restaurants and cafés. Serving more than 100,000 brands through 20 offices nationwide, iPOS.vn empowers businesses to optimize operations and overcome the limitations of traditional F&B models. Notable clients include The Coffee House, TocoToco, Cong Ca Phe, Quan Nhau Tu Do, and Com Tam Cali.

Download the Vietnam F&B Market Report for H1 2024:https://bit.ly/iposfnbreportsemi2024

Event image resources: https://bit.ly/3WK1nFi

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